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Create a 4 - 6 pages report that summarizes and discusses your performance in the six rounds of play in the ERPSim Extended Manufacturing Game on April 29 and May 4

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Create a 4 - 6 pages report that summarizes and discusses your performance in the six rounds of play in the ERPSim Extended Manufacturing Game on April 29 and May 4. The report should be structured to include an introduction, a body, and a conclusion. Like an executive summary, the report should act as a concise version of a larger report.

• The introduction should be a generally summary of what’s to come. What place did you come in? Ok, now entice the reader to want to keep reading, by promising to explain why, and by using what?
• The body of your report should focus on the key performance indicators (KPI) provided in the end-of-round financial statements (e.g., Total Sales, Gross Margin, Net Margin, Round Productivity). Use as few, or as many, as you feel you can explain your performance.
• Each KPI should contain at least one visualization. The visualizations are an effective way to communicate a large amount of data (especially numeric), but you still need to explain why it’s relevant.
• The conclusion should wrap up the story and offer suggestions on how you would do things differently to improve your performance.

Most of you have played this game enough times that this report should write itself. Look at the KPI. What was your goal? Where did you end up? Why your actual performance deviated from your expectations? How did the teams ahead of you do? Create visualizations to support your explanations or arguments. Do that for each of the KPI that is relevant.

We are 4 partner in the team and my role is a pricing manager

I just want you to write my role in the Game. 2 and a half page please. the Excel will help you to Net margin , crose margin, total sale,........The Management Team Roles & Responsibilities Pricing Manager Pricing Manager The Pricing Manager is responsible for maintaining the prices of finished goods for sale in each distribution center. Pricing Decisions • At the start of the game, all products are priced at cost + $3. • Prices can be adjusted, and must be maintained, at the DC level. • Understand the factors affecting the buying decisions of each type of store. Contribution Margin Pricing Sales & Market Analysts Sales & Market Analysts The Sales and Market Analysts are responsible for analyzing data from the game in order to help their team make data-driven decisions regarding production and pricing. Sales & Market Analysts • The Sales Manager focuses on sales generated by their team. • The Market Analyst focuses on sales generated by all teams (the market). • Both managers analyze data using SAP Cloud Analytics and reports generated by the system. Summary Sales Report Detailed Sales Report Market Report Inventory Report Production Manager Production Manager The Production Manager is responsible for running the commands that create forecasts, order raw materials, and complete the manufacturing process to create finished goods. Production Manager Production Managers rely on analysis from their market and sales analysts to decide which products to manufacture, and how long each production runs should be. Production Cycle 1. Create a forecast 2. Run MRP 3. Create purchase orders • Track purchase orders 4. Convert planned orders • Check Production Schedule Report Create Forecast The first step in the production cycle is to create a forecast. Creating Forecasts • Make sure you understand production lot sizing. • Forecasted amounts ALWAYS go in the second column. • If you think there’s no sales data available when you make your initial forecast, you’re right. MRP Step 2 is to run Material Requirements Planning (MRP). MRP Calculation This is the same MRP you learned about in BA 360. Running MRP • MRP is a calculation. It takes what you forecasted, subtracts what you already have in stock, and creates a PO based on the difference. • Every time you run MRP, you erase the one you previously ran. • Click “Execute” and then hit Enter (3X). Create Purchase Order Step 3 is to create purchase orders. Muesli Cereal When you create purchase orders, the system automatically orders all the necessary raw materials from the vendors. Purchase Orders • Remember, the quantities that get ordered are based on the MRP calculation, not your forecast. • If you get an error message saying, “No suitable requisition found”, that generally means you already have the quantity you forecasted in stock. Track Purchase Orders Not a required step, but highly recommended. Tracking Purchase Orders • • • The raw materials from your first PO will arrive the very next day, but after that, they can take anywhere from 1-5 days. The ingredients needed to make your cereal, and the boxes/bags used to package it, are ordered from two different vendors. They don’t always arrive the same day. The status of ALL raw materials from BOTH vendors must say “Delivered” before you can convert planned orders. Convert Planned Orders The fourth and final step is to convert planned orders. Converting Planned Orders • This command matches the invoices from the vendors, with the purchase orders created in the previous step. • Clicking “Select all” will convert orders numerically based on their PO number. • To avoid additional setup charges, convert like products separately. Production Schedule Report The PSR can be used to track the start/finish dates for the planned orders you just converted. Production Calendar To avoid production delays, have a system for mapping out future orders, including when to order raw materials. Scenario #1 You order raw materials for 24,000 of each flavor (either size) on Day 1. Your first production run will run Days 4?11. In order to have raw materials on Day 12 for your second production run, you need to place your second order by Day 7. Remember, all orders after the first one will take 1?5 days (it's randomized). This gives you three days, which is equivalent to 3 minutes, to evaluate sales for the three products you produced (Nut, Blueberry, Strawberry) and the six products you did not produce (the other size). Scenario #1 Place Order ↓ Day 1 RM Arrive ↓ Day 2 Prod. Starts ↓ Day 3 Day 11 Set?up Day Day 12 Day 13 Day 4 Nut 24,000 Day 14 Day 5 Blue 24,000 Day 15 Day 6 Straw 24,000 Day 16 Day 7 Set?up Day Day 17 Day 8 Raisin 24,000 Day 18 Day 9 Orig. 24,000 Day 19 Day 10 Mixed 24,000 Day 20 Scenario #2 You order raw materials for 48,000 of each flavor (either size) on Day 1. Your first production run will run Days 4?17. In order to have raw materials on Day 18 for your second production run, you need to place your second order by Day 13. This gives you nine days, which is equivalent to 9 minutes, to evaluate sales for the four products you produced (Nut, Blueberry, Strawberry, Raisin) and the six products you did not produce (the other size). Scenario #2 Place Order ↓ Day 1 RM Arrive ↓ Day 2 Prod. Starts ↓ Day 3 Day 11 Raisin 24,000 Day 12 Raisin 24,000 Day 13 Orig. 24,000 Day 4 Nut 24,000 Day 14 Orig. 24,000 Day 5 Nut 24,000 Day 15 Mixed 24,000 Day 6 Blue 24,000 Day 16 Mixed 24,000 Day 7 Blue 24,000 Day 17 Set?up Day Day 8 Straw 24,000 Day 18 Day 9 Straw 24,000 Day 19 Day 10 Set?up Day Day 20 Manufacturing Advanced Game $_1 to $_9 User: Initial password: Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated © ERPsim Lab, HEC Montréal ERPSIM Last Update: July 20, 2020 FORECAST SALES CALCULATE REQUIREMENTS ORDER MATERIALS RELEASE PRODUCTION PLAN MARKETING BUDGET MAINTAIN PRICES Create Planned Indep. Req. (MD61) MRP Run (MD01) Create Purchase Orders (ME59N) Convert Planned Orders (CO41) Marketing Expense Planning (ZADS) Change Price List (VK32) 1 Select Product group and enter the following information 1 Press Enter or click 1 Ignore orange warnings 2 your forecast quantities 3 Enter in the 2nd date column 4 2 Press two more times on Enter ! Purchase orders are created 3 ! If no open requisitions: No suitable requisitions found In the pop-up window, click 1 order: Planned ! Iforderno planned could not be selected 2 Select orders 3 ! If conversion fails, click on to see log 1 the Prices folder and 1 Open double click on Price list In Distribution channel, enter 2 10, 12 or 14 3 4 Enter your prices 5 Enter your daily amount of marketing expenditure for each product per area 2 FINANCIAL STATEMENTS STOCK LEVELS PROCUREMENT TRACKING PRODUCTION SCHEDULE PRODUCTION COST SALES AND MARKET DATA Financial Statements (F.01) Inventory Report (ZMB52) Purchase Order Tracking (ZME2N) Production Report (ZCOOIS) Product Cost Planning (ZCK11) Summary Sales Report (ZVC2) Shows stock levels for both finished products and raw materials Shows the details and the status of each purchase order Shows released production orders Shows quantities of raw materials reserved for production Shows the dates of expected goods delivery Shows variable and fixed costs for each finished product CASH FLOW Procurement Sourcing (ZME13) Code, enter 1 InyourCompany * GUI step Select ALV Tree Control 2 FIORI step In Statement Version, enter SIM1 3 GUI step FIORI step Liquidity Planning (ZFF7B) Displays an estimate of your cashflow for the coming weeks For each order, the time released, started and finished (or to start and finish if incomplete) If Target Qty > Conf. Qty production is still pending Shows the price of each raw material sold by vendors Shows sales related info such as sales revenue Shows daily amounts of fixed costs (overhead, depreciation and S, G & A) Price Market Report (ZMARKET) Shows aggregate market sales data of past 5 days REPAY LOAN REDUCE SETUP TIME INCREASE CAPACITY PLAN STOCK TRANSFER Validated BOM Change (ZCS02) G/L Account Posting (FB50) G/L Account Posting (FB50) G/L Account Posting (FB50) Stock Transfer (ZMB1B) 1 IndateJournal Entry Date, select today’s 1 Line 2 Line 2 between a Push or Pull 1 Select Planning Mode Scheduling, enter your 2 Indelivery frequency the amount of each 3 Enter product you wish to send/ 1 st 2 Change quantities and ! In Journal Entry Date, select today’s 1 date 1 IndateJournal Entry Date, select today’s 1 Line 2 Line 1 Line 2 Line 2 2 If received error messages, click on to modify the entries nd Account 113300 113101 D/C Credit ??? Amount st nd 11000 Debit D/C Credit Debit ??? Amount ??? ??? 478000 Debit D/C Credit ??? Amount ??? *To find your company code, refer to transaction ZORG (Organizational Structure) Procurement maintain in each region 4 3 3 Planning nd 113300 113300 3 st Account Account Detailed Sales Report (ZVA05) Recalculates costs based on production capacity and productivity level CHANGE PRODUCT DESIGN Select the material to change by clicking Shows aggregate daily sales by product Production Sales Reports Accounting Logistics 1/2 Manufacturing Advanced Game Blueberry Nut $$-F01 $$-F11 500g 1kg $$-F02 $$-F12 Strawberry 500g 1kg 20% wheat* 30% oat* 20% blueberry* 1 box / 1 bag* 20% wheat* 30% oat* 20% nut* 1 box / 1 bag* 500g 1kg 20% wheat* 30% oat* 20% raisins* 1 box / 1 bag* *minimum STOR AGE CAPACIT Y AND COSTS DC10 DC 10: Hypermarkets Payment Time: 20 days Approximate Market Size €90 000 per team per week DC12 DC 12: Grocery Chains Payment Time: 10-20 days Approximate Market Size €220 000 per team per week DC14 DC 14: Independent Grocers Payment Time: 1-20 days Approximate Market Size €130 000 per team per week 500g 1kg 20% wheat* 30% oat* 1 box / 1 bag* $$-F06 $$-F16 500g 1kg 20% wheat* 30% oat* 30% fruits & nuts** 1 box / 1 bag* *minimum *minimum **At least some of all fruits/nut PRODUCTION CAPACIT Y Finished products 250 000 boxes €500/day Raw materials 250 000 kg €1 000/day **Investing in additional capacity will increase equipment depreciation costs Packaging (bags and boxes) 750 000 units €100/day SETUP TIME Direct labor 20 000 Factory overhead 15 000 Payment time (days) 20 S, G & A 40 000 Depreciation (Building) €1 000 $$-F05 $$-F15 Cost per additional 50 000 units* 1-5 Main Warehouse to Regional Storage Location Mixed Current space Lead time (days) TR ANSPORTATION COSTS Last Update: July 20, 2020 Product type FIXED COSTS (€ paid each 5 days)* SUPPLIER S © ERPsim Lab, HEC Montréal ERPSIM Original $$-F04 $$-F14 500g 1kg *minimum CUSTOMER S Initial password: Raisin 20% wheat* 30% oat* 20% strawberry* 1 box / 1 bag* *minimum *minimum $$-F03 $$-F13 Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated $_1 to $_9 User: Depreciation (Equipment) *Billed automatically 1 250 Capacity (units/day) 24 000 Additional Capacity Cost (€ per 1 000 units) 1 000 000** Setup time (hours) Investment (€) 8 - 7 50 000 6 125 000 5 250 000 4 500 000 3 1 250 000 50 000** 2/2 Integrated Business Processes Manufacturing Game Last Update: June 2, 2020 Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal Integrated Business Processes © Copyright 2004-2020, ERPsim Lab, HEC Montréal 1. 2. 3. 4. 5. 6. Overview and Objectives Planning Process Procurement Process Production Process Sales Process Automated Transactions After completing this exercise, you will be able to: Overview and Objectives • Define what a business process is • Describe the 3 types of business processes • Describe the operational processes of the Manufacturing Game • Understand Business Process Modelling Notation of the Manufacturing Game processes • Perform the operational processes of the Manufacturing Game using SAP © Copyright 2004-2020, ERPsim Lab, HEC Montréal Business Process Definition A structured, measured set of activities designed to produce a specific output for a particular customer or market. A process is a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs. Processes are the structure by which an organization does what is necessary to produce value for its customers. Thomas Davenport (1993) Process Innovation: Reengineering work through information technology Harvard Business School Press, Boston Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 4 3 Types of Business Processes - Management processes will appear in the accountability view and may be subject to decisions about how activities are designed and implemented. - Main processes (operational) are processes within a process that deliver the output. - Supporting processes are processes that are necessary to ensure the main process is given everything it needs to meet the purpose for which it is designed, deployed and operated. Mark von Rosing (2015) The Complete Business Process Handbook ed. Morgan Kaufmann Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 5 Exercise Overview The scope of this exercise is to complete a full business cycle within the context of the Manufacturing game, using SAP. • The cycle begins with planning, where you will forecast how much of one finished product you expect to sell in the period. Later from this forecast, you will generate two plans: – A plan to produce the forecasted amount of products – A plan to purchase the raw materials needed for the production plan • After executing the planning process, you will complete the procurement process, where you will order, receive and pay for the raw materials. • Once the raw materials have been received and paid for, you will complete the production process, by turning these raw materials into finished goods. • Finally, you will complete the sales process, where you enter an order from a customer to sell some of those goods, ship the sold goods, send an invoice to the customer, and ultimately receive payment from the customer. Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 6 Business Process Modelling Notation (BPMN) Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 7 BPMN: Job Roles • Lanes are used for different job roles • One lane for each job role • The role name is placed on the side or at the top of each lane • Start, end, tasks, decisions etc. are all placed within the lanes to show who is responsible for that task, decision, etc. • Process flow arrows that cross lane boundaries represent the handoff of responsibility from one role to another • The visual similarity to swimming pool lanes is where the term “swim-lane flow chart” comes from • Also called a cross-functional flow chart Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 8 Manufacturing Game - Business Process Model Manufacturing Game Integrated Business Process Planning Procurement Inventory Management Accounting Production MD61 Create Planned Ind. Req. MD01 MRP Run VA01 Create Sales Order ME59N Create Purchase Orders MIGO Post Goods Movement CO41 Convert Planned Orders MIRO Enter Incoming Invoice VF01 Create Billing Documents F-28 Post Incoming Payments Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal • This is a high level process model for the activities of the Manufacturing Game, as performed in SAP. • Note that each lane corresponds to an operational process. For example, the planning process. CO15 Confirm Production F-53 Post Outgoing Payments Lab Sales VL01N Create Outbound Delivery • Note that in this exercise there are no management or supporting processes. • Document creation and flow are not presented here, but will be presented in more detail as you perform each process. 9 Login Information User : EX###_1 to EX###_5 Where ### = Company Code Password: ERPSIM Client will be provided by the instructor Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 10 Transaction ZORG: Organizational Structure Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 11 Exercise Assumptions For simplicity, assume the following: • You will sell just one product, 1kg Original Muesli (material code ###-F15) • You will produce only 24 000 units of this product • You will sell 1 000 units of this product to customer 80105 from distribution channel 10 TAKE NOTE: This icon means you have to take note of some information since you will be needing it for a future transaction. Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal REFER TO YOUR NOTES: This icon means you have to refer back to the information previously noted. 12 Goal of the Planning Process © Copyright 2004-2020, ERPsim Lab, HEC Montréal Set the requirements for the next period, by: • Making a sales forecast of the finished products • Deriving a production plan and a purchasing plan (i.e., purchase requisitions) to meet that sales forecast Planning Process Overview MD61 Create Planned Independent Requirements Independent Requirement MD01 MRP Run Purchase Requisition Planned Order Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 14 Manufacturing Planning Process in SAP Integrated Business Proces FORECAST SALES CALCULATE REQUIREMENTS ORDER MATERIALS RECEIVE Create Planned Indep. Req. (MD61) MRP Run (MD01) Create Purchase Orders (ME59N) Post Goods M 1 Select Product group and enter your company code* followed by a dash and product group F: - F 2 3 1 Press Enter or click 1 Ignore orange warnings 2 Press two more times on Enter ! Purchase orders are created 3 In the pop-up window, click ! If no open requisitions: No suitable requisitions found Enter your forecast quantities in the 2nd date column 4 * To find your company code, refer to transaction ZORG (Org. Structure) Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics RELEASE PRODUCTION CONFIRM PRODUCTION RECEIVE SALES ORDER Convert Planned Orders (CO41) Enter Prod Ord Confirmation (CO15) Create Sales Order (VA01) ERPsim Lab, HEC Montréal 1 Enter Purcha 2 Press Enter a the Close De icon if open 3 4 Enter 88 in S 5 Check all th OK column ! The goods m completed 15 SHIP Create Outbboun Planning Process: Create Forecast MD61 Create Planned Independent Requirements Independent Requirement MD01 MRP Run Purchase Requisition By setting the forecast amount, you are setting a target inventory against which future calculations (in MRP) will be performed. Planned Order Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 16 Adapted for Fiori and for SAP G with Fiori Visual Theme Activat Manufacturing Create Forecast in SAP © ERPsim Lab, HEC Montr Integrated Business Processes Exercise Last Update: May 12, 20 EX###_1 to EX### User: Initial password: FORECAST SALES CALCULATE REQUIREMENTS ORDER MATERIALS RECEIVE MATERIALS Create Planned Indep. Req. (MD61) MRP Run (MD01) Create Purchase Orders (ME59N) Post Goods Movement (MIGO) 1 Select Product group and enter your company code* followed by a dash and product group F: - F 2 3 1 Press Enter or click 1 2 Ignore orange warnings 2 Press two more times on Enter ! Purchase orders are created Enter your forecast quantities in the 2nd date column 3 4 In the pop-up window, click ! * To find your company code, refer to RELEASE PRODUCTION CONFIRM PRODUCTION transaction ZORG (Organizational Structure) Convert Planned Orders (CO41) Enter Prod Ord Confirmation (CO15) 1 1 Enter your Production Order number Lab 1 © Copyright 2004-2020, ERPsim Lab, HEC Montréal Serious games to learn enterprise systems and business analytics If no planned order: Planned 1 2 If no open requisitions: No suitable requisitions found Enter Purchase Order number Press Enter and click on the Close Detail Data icon if open 3 4 Enter 88 in SLoc 5 Check all the boxes of the OK column ! The goods movement is completed ERPSI Create forecast for 24 000 units Enter Incoming Invoice (MIRO) Post Outgoing Payments (F-53) of ###-F15 (1kg Original Muesli) POST INVOICE 1 Select today’s date in 2 Enter the PO Doc number in Purchase Order 3 Press Enter 4 In Amount, enter the same amount as the one in 5 Note the amount and press Enter 6 If balance is zero, click on POST PAYMENT 1 2 3 4 Select today’s date Under Bank Data, in Account, enter Under Bank Data, in Amount, enter the amount to pay Under Open Item Selection, in Account, enter the vendor # 5 Press Enter 6 RECEIVE SALES ORDER SHIP ORDER POST BILL RECEIVE PAYMENT Create Sales Order (VA01) Create Outbbound Delivery (VL01N) Create Billing Documents (VF01) Post Incoming Payments (F-28) Order Type : OR Distribution Channel: DC # Division : 00 1 2 In Shipping Point enter your * 1 1 2 Select today’s date 17 Under Bank Data, in Account, enter he 4 Create Forecast: 4 In Amount, enter the same amount as the one in on, Under Open Item Selection, in Account, enter V04 5 Impact on Stock/Requirements (MD07) 5 Note the amount and press Enter 6 If balance is zero, click on NT (F-28) 3 enter the amount to pay MATERIAL OVERVIEW Press Enter 6 Original Muesli (###-F15) FINANCIAL 1kg STATEMENT Stock and Requirements List (MD07) 1 Leave the Collective Access option on and type your * in Plant Financial Statements (F.01) 1 2 3 In Company Code, enter your * GUI step Oats (###-R05) Select ALV Tree Control Select a list of the desired products 1kg Original Muesli (###-F15) 2 FIORI step Oats (###-R05) In Statement Version, enter SIM1 4 ! Stock levels, requirements, and other documents are displayed 3 GUI step FIORI step *Sales To find your companyReports code, refer to transaction ZORG (Organizational Structure) Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics 1/1 ERPsim Lab, HEC Montréal 18 Planning Process: MRP Run MD61 Create Planned Independent Requirements Independent Requirement MD01 MRP Run Purchase Requisition Planned Order Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal MRP calculation in the Manufacturing Game uses the planned independent requirements (from the previous step) as the target and compares it against available inventory counts, in-process purchase orders and production orders to meet the gap in requirements. The MRP run generates purchase requisitions and planned orders, which will be converted later. 19 Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated Manufacturing MRP Run in SAP © ERPsim Lab, HEC Montréal Integrated Business Processes Exercise ERPSIM RESULTS SCREEN CALCULATE REQUIREMENTS ORDER MATERIALS RECEIVE MATERIALS POST INVOICE POST PAYMENT MRP Run (MD01) Create Purchase Orders (ME59N) Post Goods Movement (MIGO) Enter Incoming Invoice (MIRO) Post Outgoing Payments (F-53) . (MD61) nd enter llowed group F: EX###_1 to EX###_5 User: Initial password: SELECTION SCREEN S Last Update: May 12, 2020 1 Press Enter or click 1 1 2 Ignore orange warnings 2 Press two more times on Enter ! Purchase orders are created antities n 3 In the pop-up window, click ! If no open requisitions: No suitable requisitions found Enter Purchase Order number Press Enter and click on the Close Detail Data icon if open 3 4 Enter 88 in SLoc 5 Check all the boxes of the OK column ! The goods movement is completed 1 Select today’s date in 2 Enter the PO Doc number in Purchase Order 3 Press Enter 4 In Amount, enter the same amount as the one in 5 Note the amount and press Enter 6 If balance is zero, click on 1 2 3 4 Select today’s date Under Bank Data, in Account, enter Under Bank Data, in Amount, enter the amount to pay Under Open Item Selection, in Account, enter the vendor # 5 Press Enter 6 TION CONFIRM PRODUCTION RECEIVE SALES ORDER SHIP ORDER POST BILL RECEIVE PAYMENT (CO41) Enter Prod Ord Confirmation (CO15) Create Sales Order (VA01) Create Outbbound Delivery (VL01N) Create Billing Documents (VF01) Post Incoming Payments (F-28) Enter your Production Order number Order Type : OR Distribution Channel: DC # Division : 00 1 2 3 anned ted 1 Lab Press Enter 1 2 Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal Sold-to-party: Customer # In Shipping Point enter your * 1 1 2 Select today’s date Under Bank Data, in Account, enter 20 MRP Run: Impact on Stock/Requirements (MD07) 1kg Original Muesli (###-F15) 1kg Original Muesli (###-F15) Oats (###-R05) Oats (###-R05) Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 21 Goal of the Procurement Process Execute the purchasing plan to obtain the required raw materials for production, by: • Converting purchase requisitions to purchase orders (i.e., ordering raw materials) • Receiving raw materials into the warehouse once delivered by suppliers • Processing suppliers’ invoice and payment © Copyright 2004-2020, ERPsim Lab, HEC Montréal Purchase Order ME59N Create Purchase Orders MIGO Post Goods Movement Inventory Management Procurement Purchase Requisition Accounting Document Accounting Document Serious games to learn © Copyright enterprise systems2004-2020, and business analytics F-53 Post Outgoing Payments Payment Invoice Debit: Goods Receipt / Invoice Receipt Credit: Accounts Payable Lab Debit: Raw materials Credit: Goods Receipt / Invoice Receipt Goods Receipt MIRO Enter Incoming Invoice Accounting Manufacturing Game Integrated Business Processes - Procurement Procurement Process Overview ERPsim Lab, HEC Montréal Debit: Accounts Payable Credit: Cash Accounting Document 23 Manufacturing Procurement Process in SAP ntegrated Business Processes Exercise with Fiori Visual Theme Activated © ERPsim Lab, HEC Montréal Last Update: May 12, 2020 EX###_1 to EX###_5 User: Initial password: E REQUIREMENTS Run (MD01) ORDER MATERIALS RECEIVE MATERIALS POST INVOICE POST PAYMENT Create Purchase Orders (ME59N) Post Goods Movement (MIGO) Enter Incoming Invoice (MIRO) Post Outgoing Payments (F-53) 1 1 ter or click 2 ! ange warnings more times on Enter ! p-up window, click M PRODUCTION d Confirmation (CO15) ur Production Order Purchase orders are created If no open requisitions: No suitable requisitions found RECEIVE SALES ORDER Lab ERPSIM Enter Purchase Order number Press Enter and click on the Close Detail Data icon if open 3 4 Enter 88 in SLoc 5 Check all the boxes of the OK column ! The goods movement is completed SHIP ORDER Create Sales Order (VA01) Create Outbbound Delivery (VL01N) ERPsim Lab, HEC Montréal Serious games to learn © Copyright enterprise systems2004-2020, and business analytics Order Type : OR In Shipping Point enter 1 2 Select today’s date in Enter the PO Doc number in Purchase Order 3 Press Enter 4 In Amount, enter the same amount as the one in 5 Note the amount and press Enter 6 If balance is zero, click on 1 2 3 4 Select today’s date Under Bank Data, in Account, enter Under Bank Data, in Amount, enter the amount to pay Under Open Item Selection, in Account, enter the vendor # 5 Press Enter 6 POST BILL RECEIVE PAYMENT Create Billing Documents (VF01) Post Incoming Payments (F-28) Select today’s date 24 Purchase Order The MRP run (recall from planning process) generates purchase requisitions (internal documents). ME59N Create Purchase Orders MIGO Post Goods Movement Inventory Management Procurement Purchase Requisition Accounting Document Accounting Document Invoice Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal In the procurement process, created purchase requisitions need to be converted to purchase orders (formal contracts with vendors). Once committed to a purchase, the step cannot be reverted. F-53 Post Outgoing Payments Payment Debit: Goods Receipt / Invoice Receipt Credit: Accounts Payable Lab Debit: Raw materials Credit: Goods Receipt / Invoice Receipt Goods Receipt MIRO Enter Incoming Invoice Accounting Manufacturing Game Integrated Business Processes - Procurement Create Purchase Orders Debit: Accounts Payable Credit: Cash Accounting Document 25 nufacturing Create Purchase Orders grated Business Processes Exercise click © ERPsim Lab, HEC Montréal Last Update: May 12, 2020 EX###_1 to EX###_5 User: Initial password: MENTS n Enter Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated ERPSIM ORDER MATERIALS RECEIVE MATERIALS POST INVOICE POST PAYMENT Create Purchase Orders (ME59N) Post Goods Movement (MIGO) Enter Incoming Invoice (MIRO) Post Outgoing Payments (F-53) 1 1 2 ! ! TION Purchase orders are created If no open requisitions: No suitable requisitions found Enter Purchase Order number Press Enter and click on the Close Detail Data icon if open 3 4 Enter 88 in SLoc 5 Check all the boxes of the OK column ! The goods movement is completed 1 Select today’s date in 2 Enter the PO Doc number in Purchase Order 3 Press Enter 4 In Amount, enter the same amount as the one in 5 Note the amount and press Enter 6 If balance is zero, click on 1 2 3 4 Select today’s date Under Bank Data, in Account, enter Under Bank Data, in Amount, enter the amount to pay Under Open Item Selection, in Account, enter the vendor # 5 Press Enter 6 RECEIVE SALES ORDER SHIP ORDER POST BILL RECEIVE PAYMENT n (CO15) Create Sales Order (VA01) Create Outbbound Delivery (VL01N) Create Billing Documents (VF01) Post Incoming Payments (F-28) rder Order Type : OR Distribution Channel: DC # Division : 00 1 2 Lab 1 1 © Copyright 2004-2020, 2 ERPsim Lab, HEC Montréal Serious games to learn enterprise systems and business analytics In Shipping Point enter your * 1 2 Select today’s date Under Bank Data, in Account, enter TAKE NOTE: Write down the Purchase Orders numbers assigned by the system. You will need the PO numbers later to receive goods and post suppliers invoice. 26 Purchase Orders Creation: Impact on Stock/Requirements (MD07) 1kg Original Muesli (###-F15) 1kg Original Muesli (###-F15) Oats (###-R05) Oats (###-R05) Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 27 Purchase Order ME59N Create Purchase Orders MIGO Post Goods Movement Inventory Management Procurement Purchase Requisition Accounting Document Accounting Document Invoice Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal After placing the orders, the vendor sends the raw materials. These raw materials need to be accepted into the inventory using the MIGO transaction. F-53 Post Outgoing Payments Payment Debit: Goods Receipt / Invoice Receipt Credit: Accounts Payable Lab Debit: Raw materials Credit: Goods Receipt / Invoice Receipt Goods Receipt MIRO Enter Incoming Invoice Accounting Manufacturing Game Integrated Business Processes - Procurement Post Goods Movement Debit: Accounts Payable Credit: Cash Accounting Document 28 g Post Goods Movement Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated © ERPsim Lab, HEC Montréal ess Processes Exercise E59N) found EX###_1 to EX###_5 User: Initial password: LS ated Last Update: May 12, 2020 ERPSIM RECEIVE MATERIALS POST INVOICE POST PAYMENT Post Goods Movement (MIGO) Enter Incoming Invoice (MIRO) Post Outgoing Payments (F-53) 1 2 Enter Purchase Order number Press Enter and click on the Close Detail Data icon if open 3 4 Enter 88 in SLoc 5 Check all the boxes of the OK column ! The goods movement is completed 1 Select today’s date in 2 Enter the PO Doc number in Purchase Order 3 Press Enter 4 In Amount, enter the same amount as the one in 5 Note the amount and press Enter 6 If balance is zero, click on 1 2 3 4 Select today’s date Under Bank Data, in Amount, enter the amount to pay RECEIVE PAYMENT A01) Create Outbbound Delivery (VL01N) Create Billing Documents (VF01) Post Incoming Payments (F-28) mer # mer # Lab 1 Serious games to learn © Copyright enterprise systems2004-2020, and business analytics 2 4 5 Press Enter 6 POST BILL 1 2 3 3 In step 1, use the PO number you wrote down earlier. It should be the first of the two - the one for Foodbrokers Inc. Under Open Item Selection, in Account, enter the vendor # SHIP ORDER C# 1 Under Bank Data, in Account, enter RDER In Shipping Point enter your * ENTER PO NUMBER REFER TO YOUR NOTES: 2 1 2 Select today’s date Under Bank Data, in Account, enter ERPsim Lab, HEC Montréal Under Bank Data, in 5 29 Goods Movement Posting: Impact on Stock/Requirements (MD07) 1kg Original Muesli (###-F15) 1kg Original Muesli (###-F15) Oats (###-R05) Oats (###-R05) Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 30 Goods Movement Posting: Impact on Financial Statements (F.01) BEFORE Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal AFTER 31 Purchase Order ME59N Create Purchase Orders MIGO Post Goods Movement Inventory Management Procurement Purchase Requisition Accounting Document Accounting Document F-53 Post Outgoing Payments Payment Invoice Debit: Goods Receipt / Invoice Receipt Credit: Accounts Payable Lab Debit: Raw materials Credit: Goods Receipt / Invoice Receipt Goods Receipt MIRO Enter Incoming Invoice Accounting Manufacturing Game Integrated Business Processes - Procurement Enter Incoming Invoice Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal After receiving the raw materials into the inventory, the vendor (FoodBroker Inc. or V01) sends the invoice. This invoice needs to be entered into the system using transaction MIRO. The invoice amount remains in Accounts Payable until the vendor is paid. Debit: Accounts Payable Credit: Cash Accounting Document 32 Enter Incoming Invoice Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated © ERPsim Lab, HEC Montréal s Exercise Last Update: May 12, 2020 EX###_1 to EX###_5 User: Initial password: ERPSIM ALS POST INVOICE POST PAYMENT (MIGO) Enter Incoming Invoice (MIRO) Post Outgoing Payments (F-53) number n the is y (VL01N) r >* 1 2 Select today’s date in Enter the PO Doc number in Purchase Order 3 Press Enter 4 In Amount, enter the same amount as the one in 5 Note the amount and press Enter 6 If balance is zero, click on 1 2 3 4 1 Under Bank Data, in Account, enter 4 Under Bank Data, in Amount, enter the amount to pay 5 Press Enter 6 2 TAKE NOTE: RECEIVE PAYMENT Create Billing Documents (VF01) Post Incoming Payments (F-28) 1 2 2 Lab In step 2, use the PO number you wrote down earlier. It should be the first of the two - the one for Foodbrokers Inc. Under Open Item Selection, in Account, enter the vendor # POST BILL 1 5 Select today’s date REFER TO YOUR NOTES: Select today’s date 6 Under Bank Data, in Account, enter Serious games to learn Data, in © Copyright enterprise systems2004-2020, andUnder BankERPsim Amount, enter the business analytics 3 amount to pay Lab, HEC Montréal In step 5, take note of the invoice amount. You will need it later to pay the vendor. 33 Incoming Invoice: Impact on Financial Statements (F.01) BEFORE Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal AFTER 34 Purchase Order ME59N Create Purchase Orders MIGO Post Goods Movement Inventory Management Procurement Purchase Requisition Accounting Document Accounting Document F-53 Post Outgoing Payments Payment Invoice Debit: Goods Receipt / Invoice Receipt Credit: Accounts Payable Lab Debit: Raw materials Credit: Goods Receipt / Invoice Receipt Goods Receipt MIRO Enter Incoming Invoice Accounting Manufacturing Game Integrated Business Processes - Procurement Post Outgoing Payments Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal After entering the invoice into the system, the vendor (FoodBroker Inc. or V01) needs to be paid using transaction F-53. This transaction will be the last step of the procurement process. Debit: Accounts Payable Credit: Cash Accounting Document 35 Post Outgoing Payments Adapted for Fiori and for SAP GUI with Fiori Visual Theme Activated © ERPsim Lab, HEC Montréal Last Update: May 12, 2020 EX###_1 to EX###_5 ser: itial password: E (MIRO) same press k on REFER TO YOUR NOTES: POST PAYMENT Post Outgoing Payments (F-53) 1 ber in ERPSIM 2 3 4 1 Select today’s date In step 3, enter the invoice amount you wrote down earlier. Under Bank Data, in Account, enter 2 Under Bank Data, in Amount, enter the amount to pay 3 Under Open Item Selection, in Account, enter the vendor # 5 Press Enter 6 4 RECEIVE PAYMENT s (VF01) Post Incoming Payments (F-28) 1 2 3 Select today’s date 6 Under Bank Data, in Account, enter Under Bank Data, in Amount, enter the Serious games to learn amount to pay © Copyright ERPsim Lab, HEC Montréal enterprise systems2004-2020, and Lab business analytics Under Open Item Selection, 36 Outgoing Payments: Impact on Financial Statements (F.01) BEFORE Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal AFTER 37 Purchase Order ME59N Create Purchase Orders MIGO Post Goods Movement Inventory Management Procurement Purchase Requisition Repeat the last 3 steps of the procurement process, this time for the second supplier. (V02-Continental Printing Co.) Accounting Document F-53 Post Outgoing Payments Payment Invoice Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal • Post Goods Movement • Enter Incoming Invoice • Post Outgoing Payments REFER TO YOUR NOTES: Accounting Document Debit: Goods Receipt / Invoice Receipt Credit: Accounts Payable Lab Debit: Raw materials Credit: Goods Receipt / Invoice Receipt Goods Receipt MIRO Enter Incoming Invoice Accounting Manufacturing Game Integrated Business Processes - Procurement Procurement Process Accounting Document Debit: Accounts Payable Credit: Cash Use the PO number you wrote down earlier. It should now be the second of the two - the one for Continental Printing Co. 38 Full Procurement Process: Impact on Financial Statements (F.01) BEFORE Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal AFTER 39 Goal of the Production Process © Copyright 2004-2020, ERPsim Lab, HEC Montréal Execute the production plan created by the planning process, by: • Converting planned orders to production orders to schedule the production run • Confirming production orders which updates the inventory level Production Process Overview CO41 Convert Planned Orders CO15 Confirm Production Production Order Raw Material Consumption Debit: Consumption raw materials Credit: Raw materials Accounting Document Factory Output Production Debit: Finished goods Credit: Total finished products produced Accounting Document Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 41 3 Enter your forecast quantities in the 2nd date column Production Process in SAP 3 In the pop-up window, click 4 CONFIRM PRODUCTION RECEIVE SALES ORDER Convert Planned Orders (CO41) Enter Prod Ord Confirmation (CO15) Create Sales Order (VA01) Create Outbbound Delive Enter your Production Order number Order Type : OR Distribution Channel: DC # Division : 00 1 2 3 1 ! If no planned order: Planned order could not be selected 2 Select all the orders or just select the ones you want to convert 3 ! 2 Press Enter 3 Select 4 If conversion fails, a will appear ! ERPsim Lab, HEC Montréal 1 2 The production is confirmed *To find your company code, refer to transaction ZORG (Organizational Structure) Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ! The goods movement completed RELEASE PRODUCTION 1 Lab ! If no open requisitions: No suitable requisitions found 4 Enter 88 in SLoc 5 3 Sold-to-party: Customer # Ship-to-party: Customer # Cust. Ref. date: Today’s date Cust. Reference: Your Name Material: Material Code Order Quantity: Qty 4 Press Enter 5 ! The sales order is created Planning SHIP ORDER In Shipping Point ente your * eated 3 3 enter the amount to pay Create Billing Documents Screen 1 5 5 4 In Amount, enter the same amount as the one in 4 Note the amount and press Enter 6 If balance is zero, click on Under Open Item Selection, in Account, enter the vendor # Press Enter 6 POST BILL RECEIVE PAYMENT Create Billing Documents (VF01) Post Incoming Payments (F-28) 1 1 2 2 Under Bank Data, in Account, enter 3 3 4 Under Open Item Selection, in Account, enter the customer number ! 5 Press Enter 6 Production Sales Lab In step 1, enter the Outbound Delivery number you wrote down previously. Select today’s date Under Bank Data, in Amount, enter the amount to pay The invoice is created REFER TO YOUR NOTES: Serious games to learn © Copyright enterprise systems2004-2020, and business analytics 1 1/1 ERPsim Lab, HEC Montréal 2 65 the s y (VL01N) >* eated 3 3 enter the amount to pay Create Billing Documents Screen 2 5 5 4 In Amount, enter the same amount as the one in 4 Note the amount and press Enter 6 If balance is zero, click on Under Open Item Selection, in Account, enter the vendor # Press Enter 6 TAKE NOTE: POST BILL RECEIVE PAYMENT Create Billing Documents (VF01) Post Incoming Payments (F-28) 1 1 2 2 Under Bank Data, in Account, enter 3 Under Bank Data, in Amount, enter the amount to pay 3 4 Under Open Item Selection, in Account, enter the customer number ! 5 Press Enter 6 The invoice is created Production At the end, write down the net value of the invoice. You will need it later. Select today’s date Sales 1/1 3 Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 66 Billing Documents: Impact on Financial Statements (F.01) BEFORE Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal AFTER 67 Debit: Total finished products sold Credit: Finished Goods Sales VA01 Create Sales Order Accounting Document Sales Order VL01N Create Outbound Delivery Picking Goods Issue VF01 Create Billing Documents Debit: Accounts Receivable Credit: Revenues Accounting Document Accounting Manufacturing Game Integrated Business Processes - Sales Post Incoming Payments F-28 Post Incoming Payments After billing the customer, their payment needs to be posted in the system using transaction ‘Post Incoming Payment’ (F-28). This will conclude the sales process and the full business cycle. Invoice Debit: Cash Credit: Accounts Receivable Accounting Document Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 68 ame press 3 enter the amount to pay Post Incoming Payments 5 4 Under Open Item Selection, in Account, enter the vendor # Press Enter on 6 REFER TO YOUR NOTES: RECEIVE PAYMENT s (VF01) Post Incoming Payments (F-28) 1 2 1 Select today’s date In step 3, enter the amount of the invoice you wrote down previously. Under Bank Data, in Account, enter 3 Under Bank Data, in Amount, enter the amount to pay 4 Under Open Item Selection, in Account, enter the customer number 3 2 4 5 Press Enter 6 Sales 1/1 6 Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal 69 Incoming Payments: Impact on Financial Statements (F.01) BEFORE Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal AFTER 70 Manufacturing Game: Automated Business Process Manufacturing Game Integrated Business Process Planning Procurement MD61 Create Planned Ind. Req. ME59N Create Purchase Orders MD01 MRP Run Inventory Management Accounting Production x VA01 Create Sales Order x MIGO Post Goods Movement CO41 Convert Planned Orders x x x x MIRO Enter Incoming Invoice CO15 Confirm Production F-53 Post Outgoing Payments VF01 Create Billing Documents F-28 Post Incoming Payments Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics Sales ERPsim Lab, HEC Montréal x VL01N Create Outbound Delivery • When playing the Manufacturing game, the simulator automatically does most of the business transactions, playing the roles of vendors, customers and different staff members (warehouse, production and accounting). • This lets you focus on what is most important – making good business decisions! 71 Integrated Business Processes Manufacturing Game Last Update: June 2, 2020 Lab Serious games to learn © Copyright enterprise systems2004-2020, and business analytics ERPsim Lab, HEC Montréal Running Head: REPORT ON ERPSIM EXTENDED MANUFACTURING GAME RESULTS 1 Report on ERPSim Extended Manufacturing Game Results Student’s name Institution of Affiliation Course Date REPORT ON ERPSIM EXTENDED MANUFACTURING GAME RESULTS IN 2 Introduction After participating in the ERPSim Extended manufacturing game, we were ranked 11th after the six rounds of play. This positional rank is a result of slightly lower sales and a lower return on assets. The other team registered higher sales than our team in all of the rounds of play. Total sales Our team’s sales were lower than our competitors throughout the rounds of play. Our competitors’ sales were at an average of 37.6% higher than our sales in the six rounds of play. Gross margin Our team’s gross margin was higher than our competitors in all rounds of play. The evidence of this phenomenon could be seen in the progressive increment of the company valuation value. The company’s value at the end of round one was 28,279,680$. By the end of the sixth round, the company’s value had grown at an approximate rate of 146% to stand at 69,570,386.18$. Net margin Our net margin was higher than our competitors in all rounds of play except for the first round. The trend was true even for our company’s ROE. The effect here is revealed in the company’s valuation at the end of each round of play. Round productivity Our round productivity was all in rounds of play lower than our competitor’s. Our company’s debt-to-equity ratio average for all rounds of the game was 39.16%. Our company’s D/E ratio coupled with low sales greatly affected the round productivity rate. REPORT ON ERPSIM EXTENDED MANUFACTURING GAME RESULTS IN 3 Conclusion Our company, however, is determined to pull off more remarkable results in the next rounds of play. We have come up with strategies to help realize that desire. The company will involve all of its members to enact the betterment strategy. The synergy will prove worthwhile as all aspects under each member play a role in the company’s success. Invest better in marketing to boost sales The company looks forward to plowing some of its profit into marketing. The end game is to increase income gained from sales, maintaining our high gross margin. The company could use informative emails to market the products. The emails could be sent alongside transaction documents such as invoices. Using innovative marketing skills The company realizes the need to understand factors affecting buyers’ decisions. The company, therefore, seeks to target the products’ market as per their trading power. Here the company will evaluate the market and cluster the clients in terms of quantity and units of products. Small clients who are players in the retail sector will be offered a deal suited to their preferences. Big clients who deal in wholesale will also get a product to their fitting. Costs incurred due to shipping can receive a waiver to a certain rate. Planning of sustainable production The company will seek ways to cut on costs incurred from servicing debt. Therefore, the company will roll out a production plan that would significantly avoid acquiring debt. The longterm goal is to project a high rate of round productivity. REPORT ON ERPSIM EXTENDED MANUFACTURING GAME RESULTS IN 4 Better pricing strategy The company will choose a better strategy for product pricing. The pricing can be dictated by the type of trading power processed by involved consumers. The number of products ordered could be used as a factor in the pricing. The pricing strategy should turn the customers into loyal ones in the long run. Creation of budget of expenditure The company will come up with a budget as management control. The budget will dictate the cost incurred in the production and running of the entity. The budget will highlight where the company needs to improve in the spending. Acquisition of standard and quality raw materials The company will endeavor to acquire high-quality raw materials. This ensures that the products from the company are competitive in the market. This guarantees increased sales as the products are of high quality. Acquiring better production handling methods The company will have to improve on its production techniques. The options resorted to will cut down on unnecessary production costs. This way, the production process can get the most out of the raw materials and time input. REPORT ON ERPSIM EXTENDED MANUFACTURING GAME RESULTS IN 5 Following through with production plans The company looks to adhere to scheduled production plans. The production plan will help the company have sufficient stock for clients. The company will follow preset procedures in production. These procedures include creating a forecast, material requirements planning, creating purchase orders, and converting planned orders. The company can therefore provide products timely to the clients. The company will benefit from this as clients will rate it as reliable. The clients are more likely to recommend the company to other clients seeking similar products. The recommendations earn the company a new market and consequently increase in sales. Making and follow up of sales forecast for products The company will be sure to have a list of the potential market they are to venture into. The forecast will enable the company to know exactly how much to produce. The company, therefore, gains as no wasteful expenditure in production is incurred. Analysis of sales and marketing data The company will keep tabs on data involving their sales and marketing. This puts the company at an advantage of tracking transactions, revenue collected, and stock sold off to consumers. This data will be used to understand customer’s preferences. This data, therefore, further guides the production plan and marketing strategies. This data will also show how best to engage possible market prospects while maintaining current markets.